- Peter Schiff warns the U.S. dollar will collapse, potentially worse than 2008, and says Gold will replace the dollar as a reserve asset.
- Central banks have bought more than 1,000 tonnes of gold per year since 2022, seen as a move away from the dollar.
- Gold prices have risen past $5,000 per ounce, and some executives say holding gold is now rational.
- Global central bank reserves hold about 36,000 metric tons of gold (~$4.5 trillion) versus ~$3.5 trillion in U.S. Treasuries; foreign central banks cut Treasury holdings by about $183 billion since April 2025.
- Federal Reserve Bank of Minneapolis data show $100 in 2025 buys what $12.05 did in 1970, illustrating long-term dollar erosion.
Economist Peter Schiff told Fox Business he expects an economic crisis centered in the U.S. that will eclipse the 2008 collapse and that the dollar will lose reserve status to gold. He attributed the risk to a consumer-driven, credit-based economy built on the dollar’s current reserve role and said central banks are shifting toward gold to back currencies.
Central banks have increased gold purchases, buying over 1,000 tonnes annually since 2022. Those purchases coincide with a surge in gold prices that have moved past $5,000 per ounce, and some financial leaders have revised their views on gold’s role in portfolios.
Jamie Dimon, chief executive of JPMorgan, said, “It could easily go to $5,000 or $10,000 in environments like this. This is one of the few times in my life it’s semi-rational to have some in your portfolio.” Ken Griffin of Citadel said he now views gold as a safe-haven asset similar to the dollar’s former role and noted moves to de-dollarize holdings.
The shift in central-bank reserves is measurable: central banks hold roughly 36,000 metric tons of gold, valued at about $4.5 trillion, compared with about $3.5 trillion in U.S. Treasuries. Since April 2025, foreign central banks have trimmed Treasury exposure by roughly $183 billion and redirected funds into gold.
Schiff declined to name a specific gold price, saying, “I don’t have a target price other than much higher, because there’s no floor on the dollar, so there’s no ceiling on gold.” He also warned that inflation will be more severe in coming years and cited precious metals as a warning signal. The Federal Reserve Bank of Minneapolis reports that $100 in 2025 buys what $12.05 did in 1970, highlighting the dollar’s long-term loss of purchasing power.
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